Consumption of frozen food rose during the recession period as consumer restrained from visiting restaurants and started having frozen food, a cheaper alternative at home. The frozen food market is estimated to be close to USD 60 bn in 2010, an important category of this market is frozen processed food. This consists of products as frozen desserts, bakery items, pizza, frozen mean products, soup, noodles, etc. The US frozen processed food market is estimated to be close to USD 30 bn in 2010.
Long shelf life as compared to fresh and preserved food products and convenience of usage are two key factors for the popularity of frozen processed food in US.
Trends in US frozen processed food market
- Health and wellness: Apart from the convenience factor which has always been key selling point for frozen processed food, consumers increasingly are getting aware of the health and wellness aspect of the products. Thus there is a rise in health oriented products such as organic foods, foods with Omega-3, etc.
- Most popular frozen processed food products in US include: sausages, meat balls, chicken breast, chicken wings, shrimps, sauced vegetables, sandwiches, breakfast related products, etc.
- Competition: frozen processed food is an intensely competitive industry with no dominant player and large number of small and medium sized regional players
- Supermarkets / hypermarkets dominate the sale of processed frozen food. The products are also sold at various non-grocery retail shops too. Presently, internet retailing is close to nil for this food category.
Key players in US frozen processed food market
The industry is highly fragmented with intense competition. This also ensures that prices do not rise rapidly. Key players in the market are:
- ConAgra Foods
- Kraft Foods
- Heinz Co.
- General Mills
- Kellogg Co.
- Schwan Foods
- Birds Eye Food
- Wal Mart stores
- Tyson Foods
Key brands in US frozen processed food market
- Banquet, Healthy Choice – ConAgra
- Stouffer’s, Hot Pockets, Lean Cuisine, Tombstone, DiGiorno – Nestle
- Ore Ida, Weight watchers – Heinz
- Kellogg ego, morning star – Kellogg
- Totinos – General Mills
- Oscar Mayer, Claussen – Kraft Foods,